Recently released market study: Kuwait Shipping Report Q3 2011

New Transportation research report from Business Monitor International is now available from Fast Market Research

PRLog - Jul. 8, 2011 - Global shipping continues to suffer from the glut of vessels ordered during the boom years coming online. With demand still struggling to recover to previous levels, the three shipping sectors - container and dry and liquid bulk - are all struggling to maintain healthy rates in the face of overcapacity in the global fleet. Indexes are falling and ships are increasingly being forced to operate below break-even rates. Huge geopolitical events, such as the Arab Spring and the Japanese earthquake, have further complicated the market dynamics in the shipping sector.

Kuwait's ports are still struggling to recover the volumes they enjoyed prior to the global economic downturn, and BMI does not expect them to recover these volumes this year. Middle Eastern unrest could add further woes to the ports, but the high oil prices they have caused could also provide upside risk as the Kuwaiti consumer becomes richer on the back of them.

Headline Industry Data

* 2011 port of Shuaiba tonnage throughput forecast to rise 3.4% following projected growth of 1.01% in 2010. * 2011 port of Shuwaikh container throughput forecast to grow 5.0% and to average 7.4% to 2015. * 2011 total trade growth forecast to grow 2.5% and to average 3.9% to 2015.

Key Industry Trends

New Kuwaiti Port To Take Iraqi Custom: The foundation stone for the new Kuwaiti port of Mubarak al- Kabir was laid in May, setting in motion the Kingdom's plans to become a major trading hub for the region. BMI notes, however, that the port's success is likely to rely on thwarting Iraqi ambitions to claim the same crown, and the stone-laying ceremony has reawakened tensions between the two neighbours.

KOTC Takes Delivery Of Oil Tanker From DSME: Kuwait's state-owned Kuwait Oil Tankers Company (KOTC) took delivery of a 2.1mn barrel oil tanker from South Korean ship building company Daewoo Shipbuilding and Marine Engineering Company (DSME) on February 15 2011. The new tanker, named Om Al-Aish, is the second oil tanker to be delivered to KOTC as part of its US$700mn agreement with DSME to construct four tankers.

Sandstorm Disrupts Kuwaiti Exports: A dust storm descended on Kuwait in April, causing the country's oil exports by sea to be halted by the country's main oil authority, the Kuwait Petroleum Corporation.

Risks To Outlook

The Middle East and North Africa region has seen huge upheavals since the start of the year, and no country is immune from the repercussions on trade. Kuwait has not been severely hit by unrest, but it is still possible that demonstrations could develop as they have in other Gulf countries, which could adversely affect our port throughput forecasts. Further potential downside risks to our throughput forecasts come in the form of the exposure to oil price volatility and a slowdown in global demand. Despite the broadly healthy picture of Kuwait's public finances, high reliance on oil, which accounts for 94% of total revenues, exposes the budget and, consequently, trade to oil price volatility.

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

# # #

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.